According to a legal associate, there are seven instances whereby an employer can withhold or deduct the wage of a worker.
Expatriates account for around 90 per cent of the UAE’s workforce, working across all the public and private sectors. Under certain circumstances, an employer can withhold or deduct the employee’s salary.
According to Navandeep Matta, senior legal associate at Nasser Yousuf Al Khamis Advocates and Legal Consultants, there are seven instances under Article 25 (1 & 2) whereby an employer can withhold or deduct the wage of a worker.
They are as follows:
- The redemption of loans granted to the worker, within the maximum limit of the monthly deduction percentage from the worker’s wage stipulated in this Article, after obtaining the worker’s written consent and without any interest.
- The redemption of the amounts paid to the worker in excess of his entitlements provided that the amount deducted does not exceed 20 per cent of the wage.
- The amounts deducted for the purposes of calculating the contributions in bonuses, retirement pensions and insurance according to the legislation in force in the State.
- The worker’s contributions to the Savings Fund at the establishment or the loans payable to the Fund approved by the Ministry.
- Installments for any social project or any other benefits or services provided by the employer and approved by the Ministry, provided that the worker agrees in writing to participate in the project.
- Amounts deducted from the worker due to violations he commits, provided that they shall not exceed 5 per cent of the wage.
- Debts due pursuant to a judgement, without exceeding a quarter of the wage payable to the worker, except for the awarded alimony debt, as more than a quarter of the wage may be deducted. In case of several debts, the amounts to be paid shall be distributed as per the privilege categories.
Moreover, Matta said if there are many reasons for deduction or withholding from the wage, in all cases the percentage of deduction and/or withholding may not exceed 50 per cent of the wage.
“Therefore, in view of the above-mentioned laws and regulations, the employer cannot either directly or indirectly deduct travel allowance from his worker and adjust the same from his cash allowance. It is advised to the workers to clarify the annual return ticket before signing the employment contract,”
said Matta.
However, it is not permissible to deduct an amount greater than that, except with the approval of the competent court, he added.
News Source: Khaleej Times
